Synopsis: Canara HSBC Life is in focus after Motilal Oswal projects a staggering 56% upside in the stock price as it feels that the company is in a better position to channelise Canara Bank’s 120 million customers, a low insurance penetration and more.
The shares of this leading private life insurance company, which is jointly promoted by Canara Bank and HSBC Insurance (Asia-Pacific) Holdings Limited, are in focus after Motilal Oswal projects a staggering 56 percent upside in this stock, citing numerous upticks. In this article, we will dive more into the details of it.
With a market capitalisation of Rs 13,414 crore, the shares of Canara HSBC Life Insurance Company Ltd closed at Rs 141.70 per share, down 3 percent from its previous day’s closing price of Rs 145.65 per share. Post its listing on the stock exchange in October 2025, the shares have already rallied over 27 percent.
Analyst Comments
Leading brokerage Motilal Oswal has assigned a “Buy” call on the stock and has fixed a target price of Rs 220 per share (bull case) on Canara HSBC, which signals an upside potential of over 56 percent from its current market price.
Motilal Oswal cited that the company is already among India’s top 10 life insurers and has a healthy business mix. In the first half of FY26, ULIPs accounted for 50 percent of the business, non-participating products contributed 34 percent, and participating and protection products contributed to 8 percent each.
A major source of strength for the corporation is the outstanding reach of its distribution network. Most of its business is through banks (bancassurance), with Canara Bank accounting for 70 percent and HSBC for 15 percent. As per Motilal, the corporation has shown outstanding performance consistently.
The insurance major has reported a staggering CAGR of 22 percent in APE over the past decade (APE is a measure of the yearly value of new insurance premiums sold). As a result, its market share has risen by 90 basis points in the overall industry and 110 basis points in the private sector, resulting in outperformance in both these sectors.
Additionally, the brokerage cited that the largest growth driver is that the company’s biggest channel, Canara Bank’s 120 million (12 crore) customers, which remains largely untapped. At the moment, the insurer’s penetration is only 1.7 percent, which suggests that a huge number of customers have not been reached yet.
Motilal forecasts that the company will capture more share through enhanced cross-selling, agency strength, and the introduction of new, age distribution partners. The brokerage also believes that the insurer will post a 20 percent CAGR in APE and a 23 percent CAGR in VNB (value of new business) over the FY25-28E period. It also added that VNB margins are expected to increase by around 50 bps annually over the next few years, aided by a favourable product mix and scale benefits, partly offset by investments in the agency channel.
Financial and other highlights
The revenue from operations for Canara HSBC stands at Rs 2,348 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 3,323 crores, down by 29 per cent YoY. Additionally, on a QoQ basis, it reported a decline of 35 percent from Rs 3,632 crore.
Coming down to its profitability, the company’s net profit stood at Rs 41 crore in Q2 FY26, up from Rs 37 crore in Q2 FY25, which is a growth of 11 percent YoY. Additionally, on a QoQ basis, it reported a net profit of Rs 23 crore, which is a robust growth of 78 percent.
Canara HSBC Life Insurance began operations in 2007, supported by prominent players such as Canara Bank, which holds a 36.5 percent stake, and HSBC Insurance Asia Pacific, owning 25.5 percent. The company is headquartered in Gurugram and relies mainly on a bancassurance model, meaning it distributes insurance through banks like Canara Bank and HSBC Bank, along with other partners. Its reach extends to both major cities and smaller towns.
The company offers a range of products, including term insurance, retirement plans, credit life, and employee benefits. They have also embraced digital platforms to simplify access to coverage, focusing on making insurance simple and settling claims swiftly.
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